DuPont's Strategic Split Could Unlock Value, But PFAS Risks Loom Large, Says BofA Analyst
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Steve Byrne raised the price target for DuPont de Nemours, Inc. (NYSE:DD) from $74 to $80 while maintaining an Underperform rating. The analyst believes DuPont's strategic split into three companies could unlock value, particularly in the Water and Electronics businesses, but PFAS liabilities remain a significant risk. Investors can gain exposure to DuPont through ProShares Smart Materials ETF (NYSE:TINT) and Invesco S&P 500 Equal Weight Materials ETF (NYSE:RSPM).
May 28, 2024 | 6:14 pm
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BofA Securities raised the price target for DuPont from $74 to $80 while maintaining an Underperform rating. The strategic split into three companies could unlock value, but PFAS liabilities remain a significant risk.
The analyst's price target increase suggests some positive outlook, but the Underperform rating and PFAS liabilities indicate significant risks. The strategic split could unlock value, but the overall impact is mixed.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Invesco S&P 500 Equal Weight Materials ETF (NYSE:RSPM) includes DuPont, which has a mixed outlook due to its strategic split and PFAS liabilities.
RSPM includes DuPont, which has a mixed outlook. The strategic split could unlock value, but PFAS liabilities pose risks, making the overall impact neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
ProShares Smart Materials ETF (NYSE:TINT) provides exposure to DuPont, which has a mixed outlook due to its strategic split and PFAS liabilities.
TINT provides exposure to DuPont, which has a mixed outlook. The strategic split could unlock value, but PFAS liabilities pose risks, making the overall impact neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50